Meredith WhitneyI WAS really excited about yesterday’s rally.

Meredith Whitney gave us the catalyst for the bear squeeze we expected But THEN I saw Cramer last night. Nothing scares me more than watchingCramer’sbandwagon do a 180 degree turn and head my way as he’s been wrong and wrong and wrong and then wrong for months now. Still, I’m going to try to ignore that noise and keep a level head, dealing with facts rather than fads to figure out which way thing will be going. We were happily buying last week while Cramer was herdinghis sheeple out of the market and we’ll be enjoying the free ride as he stampedes the masses back in, especially during expiration week but we’d rather see some honest, uptrending consolidation based on earnings than going back to early May’s roller coaster model that hurt so many investors on both sides.

We are, of course, thrilled with the move so far, as you can see from the newbuy list that I put up over the weekend. We cashed in our FXPs right at the top and went long on the DIA $83 calls at .40 as our 2nd trade of the day (the first was a long on GOOG into earnings). Those calls finished at $1 (up 150% and we are done, of course) and we also wentlong on GLD while it was still lowin our10:31 Alert and I put upa hedged play on TNKbut that was it. We did all our buying last week, when things were cheap and we just spent the rest of the day waiting to see if we would make our target levels.

As I said in yesterday’s morning post, we were looking for 1,750 to hold on the Nasdaq as our primary indicator that we were going to hold our 33% pullback levels on the broader index so it’s not really rocket science to see where that DIA trade came from as we timed it for right when the Nasdaq crossed back over the line after the morning dip. Having a trading premise is always helpful and, in the 9:32 level watch to Members I had said: “Without $60 oil the best we can really hope for today is to claw back to our middle set of figures. Earnings can take us up over the higher numbers as the market rotates out of commodities (if they see that other stocks look “safe”). So that’s the outlook…
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